15:02 02.03.2021

State program for 3-5 years for purchase of passenger cars will help attract intl companies - Ukrzaliznytsia

2 min read
State program for 3-5 years for purchase of passenger cars will help attract intl companies - Ukrzaliznytsia

JSC Ukrzaliznytsia notes that a three- or five-year state program to finance the annual purchase of 100 passenger cars will help Ukraine attract foreign investment in local production.

"Of course, in order to attract investments from large international players to launch local production, we need to have a program for three to five years with a clear understanding that during this time the state will finance 100-150-200 railcars a year, this is an understandable prospect for any manufacturer," the acting member of the board of Ukrzaliznytsia, the director of the Passenger Company branch, Oleksandr Pertsovsky, said.

In his opinion, this will be an incentive for international car-building companies to undertake large-scale projects for the Ukrainian 1,520 mm track gauge, they will be able to localize their production, real competition and joint ventures will appear, and local suppliers will become more active.

"All this will stimulate our manufacturers to invest in new solutions - I am sure that when they have something to fight for, they will be able to adequately accept this challenge," Pertsovsky said.

He also recalled that in the state budget for 2021, it is planned to allocate UAH 4.2 billion to update the passenger facilities of Ukrzaliznytsia, in particular, the purchase of passenger rolling stock.

"This is less than what was initially declared - at the last moment, parliamentarians revised the volume. The filling comes from a special fund with certain items that will finance these positions: part - excise tax on fuel, part - receipts from fines, etc. Therefore, this is an estimated amount, theoretically it may change slightly if not all receipts are collected," Pertsovsky emphasized.

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